We're looking forward to future growth of our high cacao content products as a high-value-added product group that combines good taste with a health benefit.

we are looking forward to future growth of our high cacao content products as a high value-added product group that combines good taste with a health benefit


justify fees, but we all do have to do it. And the one answer that we have is, in every case, we've invested a lot, bringing new portfolio managers in and

justify fees but we all do have to do it and the one answer that we have is in every case we've invested a lot bringing new portfolio managers in


versus buying back our stock, which again we think we'd be buying back at below intrinsic value versus paying a dividend, which is important to some of our shareholders,

versus buying back our stock which again we think we'd be buying back at below intrinsic value versus paying a dividend which is important to some of our shareholders


during the third and fourth quarter that do enhance other parts of our cost structure but a relatively low ARPM minutes.

during the third and fourth quarter that do enhance other parts of our cost structure but are relatively low arpu minutes


I want to emphasize that our second quarter achievements strengthen our confidence that we are focused on the right immediate priorities and that over the long term, we are well positioned to climb back into positive market share growth.

i want to emphasize that our second quarter achievements strengthen our confidence that we are focused on the right immediate priorities and that over the long term we are well positioned to climb back into positive market share growth


we have no intent really to go out and dilute shareholders. We've been saying that for quite a while now. We use cash on hand as our intent to close the Zephyr transaction.

we have no intent really to go out and dilute shareholders we've been saying that for quite a while now we use cash on hand is our intent to close the zephyr transaction


But I think the more interesting things that we do as a company and the more people in that space understand how what they're doing impacts what we can do as a company,

but i think the more interesting things that we do as a company and the more people in that space understand how -- what they're doing impacts what we can do as a company


Certainly, our first focus continues to be to drive traffic in a positive direction in all stores, but included among actions after that are the following.

certainly our first focus continues to be to drive traffic in a positive direction in all stores but included among actions after that are the following


the rapidly changing regulatory landscape and the rapidly changing expectation of consumers is really strengthening our position with our customers right now because it's so challenging for any company to navigate. And

the rapidly changing regulatory landscape and the rapidly changing expectation of consumers is really strengthening our position with our customers right now because it's so challenging for any company to navigate and


These estimates do not include any impact from potential acquisitions. This outlook may be further refined and expanded when we release our fourth quarter financial results in late February.

these estimates do not include any impact from potential acquisitions this outlook may be further refined and expanded when we release our fourth quarter financial results in late february


Also during the quarter, the REIT was pleased to provide occupancy to Porsche Cars Canada at their newly developed dealership head office and training center located at the REIT's Consumers Road complex.

also during the quarter the reit was pleased to provide occupancy to porsche cars canada at their newly developed dealership head office and training center located at the reit's consumers road complex


Export beverages and fruit performance will continue to improve in the second half given traction by distributor partners in key markets and the availability of quality dry fruit.

export beverages and fruit performance will continue to improve in the second half given traction by distributor partners in key markets and the availability of quality dried fruit


can you tier the key drivers? And is it too early to talk about where margins can go to? And if you already stated that earlier, I apologize.

can you share the key drivers and is it too early to talk about where margins can go to and if you already stated that earlier i apologize


And you know that when you look at the overall period of construction of the ships and how the working capital evolves, there are periods where you have cash consumption in working capital. So those are the 2 reasons.

and you know that when you look at the overall period of construction of the ships and how the working capital evolves there are periods where you have cash consumption in working capital so those are the 2 reasons


Financial results for the second quarter were released after the close of the market today. We also published supplemental information highlighting certain current and historical performance metrics.

financial results for the second quarter were released after the close of the market today we also published supplemental information highlighting certain current and historical performance metrics


The company plans to close on a securitized auto loan during the fourth quarter. In addition, the company continues to review other options to diversify its funding sources. The

the company plans to close on a securitized auto loan during the fourth quarter in addition the company continues to review other options to diversify its funding sources


In line with our approach of managing the business for the long term, the offering strengthens and diversifies our balance sheet and provides incremental capital to be used to make investments.

in line with our approach of managing the business for the long term the offering strengthens and diversifies our balance sheet and provides incremental capital to be used to make investments


Our fourth area, services for our largest customer, have met or exceeded our revised expectations following the changes in scope of service we announced in April.

our fourth area services for our largest customer have met or exceeded our revised expectations following the changes in scope of service we announced in april


As the housing market continues to improve, I believe the company is well positioned to deliver strong financial results, creating long-term value for our shareholders. Now I'd like to turn the call over to Mark.

as the housing market continues to improve i believe the company is well positioned to deliver strong financial results creating long-term value for our shareholders now i'd like to turn the call over to mark


they have no food and no water because they couldn't come up to the road to supply the town. So everything has shut down as we speak.

they have no food and no water because they couldn't come up to the road to supply the town so everything is shut down as we speak


but it's no secret that 2016 is expected to be another challenging year. On Slide 16, you can see various issues that are affecting all categories, not just ours.

but it's no secret that 2016 is expected to be another challenging year on slide 16 you can see various issues that are affecting all categories not just ours


So just pointing that out, given that -- to highlight that the growth in our yields in the portfolio were really core and not fair value-driven.

so just pointing that out given that to highlight that the growth in our yields in the portfolio were really core and not fair value driven


and our big projects also on the western side of Ontario, plus obviously all the maintenance of their network. This is a network that is

and there are big projects also on the western side of ontario plus obviously all the maintenance of their network this is a network that is


Another reason for our early traction in Europe is that we have been able to partner with a set of distributors that have deep experience and relationship in the microbiology and infectious diseases space.

another reason for our early traction in europe is that we have been able to partner with a set of distributors that have deep experience and relationships in the microbiology and infectious diseases space


and also a more stringent recruiting processes. And this really has a double effect, right? Because on the one hand, you got more terminations from more stringent validation requirements that are being enforced.

and also more stringent recruiting processes and this really has a double effect right because on the one hand you have more terminations from more stringent validation requirements that are being enforced


with continued confidence for approval as we've said before by year end 2017. Second, we continued the execution of precision controlled launch strategy,

with continued confidence for approval as we've said before by year-end 2017 second we continued the execution of our precision-controlled launch strategy


Given U.K. and Canadian operations now represent roughly 10% of our business, it is important to consider currency translation when modeling both top and bottom line in this volatile currency environment.

given u k and canadian operations now represent roughly 10% of our business it is important to consider currency translation when modeling both top and bottom line in this volatile currency environment


It's exactly the reason why we did the diversification and the acquisition we did in 2012 and potentially setting up very nicely to see those benefits over the next couple of years. So

it's exactly the reason why we did the diversification and the acquisition we did in 2012 and potentially setting up very nicely to see those benefits over the next couple of years so


I'm glad you asked the question. I was going trying to try to pick up on it later on the call before concluding the call. When -- I said earlier that -- I referred to the Brio Gold division

i'm glad you asked the question i was going to try to pick up on it later on the call before concluding the call when i said earlier that i referred to the brio gold division


a steady demand for their product which is consumed by the EnerSys sales channel primarily in the Asian region has helped them. So we had

a steady demand for their product which is consumed by the enersys sales channel primarily in the asian region has helped them so we had a


as customers tend to buy online the higher frequency, smaller items and they tend to focus their trips to the store for more discovery,

as customers tend to buy online the higher frequency smaller items and they tend to focus their trips to the store for more discovery


That concludes my prepared remarks. I'd like to remind everyone that the purpose of today's call is to discuss our first quarter results, and I ask you to please limit your questions to our earnings announcement.

that concludes my prepared remarks i'd like to remind everyone that the purpose of today's call is to discuss our first quarter results and i ask you to please limit your questions to our earnings announcement


Thank you, Kevin. Good morning, everyone. We're pleased to report another quarter with record revenue and earnings. As always, I'd like to begin today by thanking our associates for all the hard work that went into producing those results

thank you kevin good morning everyone we're pleased to report another quarter with record revenue and earnings as always i'd like to begin today by thanking our associates for all the hard work that went into producing those results


we never really focused on them as much just simply, because from a competitive perspective they're usually not quite in the same game as us. Just due to some of the efficiencies we have with the equipment

we never really focus on them as much just simply because from a competitive perspective they're usually not quite in the same game as us just due to some of the efficiencies we have with the equipment


We are pleased with our progress, and we remain focused on continuous improvement initiatives across our global platform that will further enhance Culp's strong value proposition.

we are pleased with our progress and we remain focused on continuous improvement initiatives across our global platform that will further enhance culp's strong value proposition


One thing I think it's interesting, Jim, is when I look at this reserve, if you look at the spending against the reserve over the last several years, it has been declining

one thing i think that's interesting jim is when i look at this reserve if you look at the spending against the reserve over the last several years it has been declining


These statements are not a guarantee of future performance and results may differ materially from those projected. I ask you to refer to our SEC filings for a full discussion of the company's risk factors.

these statements are not a guarantee of future performance and results may differ materially from those projected i ask you to refer to our sec filings for a full discussion of the company's risk factors


We continue to believe that we have significant opportunity to grow this category from a penetration level of 11% to north of 20%, which is in line with our peer set.

we continue to believe that we have significant opportunity to grow this category from a penetration level of 11% to north of 20% which is in line with our peer set


Starting with our initiatives to improve the customer experience, we reached a key milestone during the quarter with a successful implementation of our new operating procedures, which we call,

starting with our initiatives to improve the customer experience we reached a key milestone during the quarter with the successful implementation of our new operating procedures which we call


as we believe the implementation of our standardized in-store operating procedures and brand standards will benefit our integration process and increase the value we realize from these stores.


And you would like to reduce sugar, and I'm sure that question comes up afterwards. Then there is one very, very easy way. You are going to eat

and you would like to reduce sugar and i'm sure that question comes up afterwards then there is one very very easy way you know you are going to eat


So for that reason, I think doing that and as well assuming that 5%, I think we are on the safe side that we should be able to do that.

so for that reason i think doing that and as well assuming that 5% i think we are on the safe side that we should be able to do that


I also found a strong culture of innovation and an intense and unwavering focus on the customer, both of which I believe are critical for the success of any company.

i also found a strong culture of innovation and an intense and unwavering focus on the customer both of which i believe are critical for the success of any company


This segment continues to successfully execute its optimization strategy with an ongoing commitment to margin improvement, manufacturing excellence and leadership and product innovation.

this segment continues to successfully execute its optimization strategy with an ongoing commitment to margin improvement manufacturing excellence and leadership in product innovation


Factors that could cause this include the factors described in our most recent SEC filed quarterly or annual reports under Management's Discussion and Analysis of Financial Condition and Results of Operation

factors that could cause this include the factors described in our most recent sec filed quarterly or annual reports under management's discussion and analysis of financial condition and results of operation


according to our own design, I mean you do not have reverse logistics, you don't have a series of things that you would have when you were talking about a traditional retail company.

according to our own design i mean you do not have reverse logistics you don't have a series of things that you would have when you were talking about a traditional retail company


so we need to add more staff to do those types of calculations. You're talking about around -- a very complicated statement of cash flows for very many of the same reasons in terms of the foreign operations.

so we need to add more staff to do those types of calculations you're talking about around a very complicated statement of cash flows for very many of the same reasons in terms of foreign operations


We continue to exercise the appropriate patients in order to maximize the commercial potential for each of these devices and sign the appropriate deal for our shareholders. As you may recall,

we continue to exercise the appropriate patience in order to maximize the commercial potential for each of these devices and sign the appropriate deal for our shareholders as you may recall


Good afternoon, and welcome to the GameStop earnings call. I want to thank our worldwide team for another great effort in the first quarter in delivering outstanding customer service.

good afternoon and welcome to the gamestop earnings call i want to thank our worldwide team for another great effort in the first quarter in delivering outstanding customer service


effects can actually overwhelm anything that we might do, and that I'm actually confident we will do on the revenue side, so it makes sense for us to manage the company with expense basis

effects can actually overwhelm anything that we might do and that i'm actually confident we will do on the revenue side so it makes sense for us to manage the company on an expense basis


And we have been so every day as we were turning the business around, both operationally and financially. And while we were building those 4G and cable fiber networks we had our eye on the cash flows.

and we have been so every day as we were turning the business around both operationally and financially and while we were building those 4g and cable fiber networks we had our eye on the cash flows


In summary, we have achieved important milestones and continue to drive toward additional achievements that create value in our programs and in the company.

in summary we have achieved important milestones and continue to drive toward additional achievements that create value in our programs and in the company


The other factor that we'll have to observe is the regulatory pendulum. I think it's clear that it is going to swing, but how far and how fast and where will depend.

the other factor that we'll have to observe is the regulatory pendulum i think it's clear that it is going to swing but how far and how fast and where will depend


We said we were committed to addressing quality and innovation, now we would listen to our customers. That's why we created a Tested for Life in Canada program, and this product is a great example of our commitment to the process.

we said we were committed to addressing quality and innovation that we would listen to our customers that's why we created the tested for life in canada program and this product is a great example of our commitment to the process


Pat will offer commentary on the company's performance and an update on key initiatives. Mike will provide details on the company's financial performance. After that, we'll open the call up for questions.

pat will offer commentary on the company's performance and an update on key initiatives mike will provide details on the company's financial performance after that we'll open the call for questions


We recently rolled out Stories Everywhere so that the whole world can easily view stories on the web. We've also started bringing snaps to bigger screens like stadium jumbotrons at this year's Rose Bowl and Sugar Bowl.

we recently rolled out stories everywhere so that the whole world can easily view stories on the web we've also started bringing snaps to bigger screens like stadium jumbotron at this year's rose bowl and sugar bowl


While the quarterly decline in book value and earnings was disappointing, we continue to be encouraged by our allocation of capital to residential credit investments, which we expect

while the quarterly decline in book value and earnings was disappointing we continue to be encouraged by our allocation of capital to residential credit investments which we expect


And it's going to be a combination of the right product with the right value. And volume will clearly be an element to that in terms of WSE, but it's not going to be the end

and it's going to be a combination of the right product with the right value and volume will clearly be an element to that in terms of wse but it's not going to be the end


and I'm okay with that. But I will tell you that I'm disappointed we haven't landed anything of late. And we're working hard to do this -- just that. My hope is that by the time we talk again, a quarter from now,

and i'm okay with that but i will tell you that i'm disappointed we haven't landed anything up late and we're working hard to do this just that my hope is that by the time we talk again a quarter from now


So our expectations for this trial have been exceeded in that we have great safety and we have substantial target reduction that exceeds what we think is necessary

so our expectations for this trial have been exceeded in that we have great safety and we have substantial target reduction that exceeds what we think is necessary


we're very pleased with, first of all, the overall handover on the management leadership level. But I'm really proud what the team achieved here in -- within

we're very pleased with first of all the overall handover on the management leadership level but i'm really proud what the team achieved here in -- within


almost entirely offset by declines in headcount-related costs, network costs mainly due to network optimizations as well as reductions in data processing and software maintenance costs.

almost entirely offset by declines in headcount-related costs network costs mainly due to network optimizations as well as reductions in data processing and software maintenance costs


around how we're buying Gogo going forward so we can do a little more interesting stuff with our UNLIMITED customers and providing them access to that Gogo footprint at a reasonable price.

around how we're buying gogo going forward so we can do a little more interesting stuff with our unlimited customers and providing them access to that gogo footprint at a reasonable price


I would also like to share some assumptions that we have built into our guidance. I'm pleased to confirm that we will continue to be on track to reach breakeven profitability 8 to 10 quarters from the time we went public,

i would also like to share some assumptions that we have built into our guidance i'm pleased to confirm that we will continue to be on track to reach breakeven profitability 8 to 10 quarters from the time we went public


We continue to see that our company-wide Simplification program is delivering higher quality of service for our customers, while at the same time improving our margins.

we continue to see that our company-wide simplification program is delivering higher quality of service for our customers while at the same time improving our margins


Before I turn the call over to Michael Collins, I would like to remind everyone that today's discussion will refer to certain non-GAAP measures, which we believe are important in evaluating the company's performance.

before i turn the call over to michael collins i would like to remind everyone that today's discussion will refer to certain non-gaap measures which we believe are important in evaluating the company's performance


We are actively focused on finding the right opportunities that will leverage the experience of this leadership team and our core competencies in retail pharmacy and specialty pharmacy.

we are actively focused on finding the right opportunities that will leverage the experience of this leadership team and our core competencies in retail pharmacy and specialty pharmacy


he is already seeing ideas and opportunities for next year. And I think any great merchant like Michael is going to always believe they can do better.

he is already seeing ideas and opportunities for next year and i think any great merchant like michael is going to always believe they can do better


Our final goal is superior portfolio management. In this context, we further strengthened our capital allocation process and we continue to maintain a 15% hurdle rate for new investments

our final goal is superior portfolio management in this context we further strengthened our capital allocation process and we continue to maintain a 15% hurdle rate for new investments


Now when it comes to the manufacturing opportunity, what you said there about it being somewhat further out, I think, what you're seeing right now especially with our execution

now when it comes to the manufacturing opportunity what you said there about it being somewhat further out i think what you're seeing right now and especially with our execution is


We have solidified our financial position by securing funding for our plan 2016 activities and by restructuring contingent consideration liabilities to align payments

we have solidified our financial position by securing funding for our planned 2016 activities and by restructuring contingent consideration liabilities to align payments


In China, there is the risk of inventory, because vendors here not only play the house, but they cannot resist but to

in china there is the risk of inventory because vendors here not only play the house but they cannot resist but to


The fourth quarter base business revenue increased sequentially from the third quarter of 2016. The increase was due to the expected restocking in the quarter.

the fourth quarter base business revenue increased sequentially from the third quarter of 2016 the increase was due to the expected restocking in the quarter


Such statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements.

such statements are subject to a variety of risks uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements


On resolutions and settlements in the second quarter, Deutsch Bank made further progress in achieving settlements or resolutions with respect to certain legacy highest risk matters,

on resolutions and settlements in the second quarter deutsche bank made further progress in achieving settlements or resolutions with respect to certain legacy highest-risk matters


We continue to invest in our engineering and services. We regularly get high marks from our customers, which has resulted in a low customer churn rate.

we continue to invest in our engineering and services we regularly get high marks from our customers which has resulted in a low customer churn rate


Despite the weak profile of our current guarding operations in Brazil, we believe we have introduced all the strategic foundations needed to perform a successful turnaround.

despite the weak profile of our current guarding operations in brazil we believe we have introduced all the strategic foundations needed to perform a successful turnaround


These customer metrics are all clear indicators of the demand for our products and services as well as the loyalty of our customers. I'm very proud of the efforts of our team in delivering these results.

these customer metrics are all clear indicators of the demand for our products and services as well as the loyalty of our customers i'm very proud of the efforts of our team in delivering these results


is it fair to make the assumption that the power product or the demand side of the project was tied to the Massachusetts ruling? And

is it fair to make the assumption that the power product for the demand side of the project was tied to the massachusetts ruling in


as we get out there and as I spend time with the sales team, sales team's increasingly excited, especially because they've really gone from gathering negative client feedback

as we get out there and as i spend time with the sales team sales team is increasingly excited especially because they've really gone from gathering negative client feedback


And it's costing us some share in the short term, but it's healthy overall because we're trying to let the amount of late model used get bought up in the marketplace

and it's costing us some share in the short term but it's healthy overall because we're trying to let the amount of late model used get bought up in the marketplace


we will have less contribution in Q4 because the water was already accounted for last year. But given where we stand at the end of June, given the results

we will have less contribution in q4 because the water was already accounted for last year but given where we stand at the end of june given the results


I'm wondering what percentage of those international regions or product categories are EBIT positive right now? And do you think that segment turns profitable by year-end in terms of the EBIT line?

i'm wondering what percentage of those international regions or product categories are ebit positive right now and do you think that segment turns profitable by year-end in terms of the ebit line


The secondary benefit is that we are finding new customers for our funnel. And as that funnel gets wider and we start prospecting with people who have an affinity for the outdoors,

the secondary benefit is that we are finding new customers for our funnel and as that funnel gets wider and we start prospecting with people who have an affinity for the outdoors


Those efforts will expand in 2018. Our average lateral will be 8% longer this year, and we expect the average size of our well packages to more than double.

those efforts will expand in 2018 our average lateral will be 8% longer this year and we expect the average size of our well packages to more than double


And that's also again a very big change in India that we think is right for the long term, but we have to see what the consequences are as we are working our way through it. So

and that's also again a very big change in india that we think is right for the long term but we have to see what the consequences are as we are working our way through it so


In another case, Sihl, the manufacturer that we announced recently, we were able to get them live in 8 weeks and this on Sage X3, an ERP system that was new to us.

in another case sill the manufacturer that we announced recently we were able to get them live in 8 weeks and this on sage x3 an erp system that was new to us


The portfolio is conservatively managed with a relatively short duration of 17 months. In addition, we maintained significant liquidity at the Federal Reserve.

the portfolio is conservatively managed with a relatively short duration of 17 months in addition we maintain significant liquidity at the federal reserve


Over the past year, we continued to slightly increase our level of asset sensitivity as we have now pierced through 98% of the loans in the portfolio, which had force.

over the past year we continued to slightly increase our level of asset sensitivity as we have now pierced through 98% of the loans in the portfolio which had floors


As we have seen this solution begin to resonate with many jurisdictions nationally, we have added resources under the development side of CoreCivic Properties to aggressively pursue these opportunities.

as we have seen this solution begin to resonate with many jurisdictions nationally we have added resources on the development side of corcovado properties to aggressively pursue these opportunities


from local sourcing of material and services to support local economies, to training to improve the employment prospects of women and young people in disadvantaged communities.

from local sourcing of material and services to support local economies to training to improve the employment prospects of women and young people in disadvantaged communities


Investors often inquire as to the appropriate level of capital, and we have responded that the stress testing results are the primary driver, and you can see our company-run midyear stress test results on our website.

investors often inquire as to the appropriate level of capital and we have responded that the stress testing results are the primary driver and you can see our company-run midyear stress test results on our website


Product availability and the reach remains key to overall performance, and we are encouraged by our progress in the potential upside in the customer recruitment and management area.

product availability and reach remains key to overall performance and we are encouraged by our progress and the potential upside in the customer recruitment and management area


This includes several contracts with existing and new clients in the communications, financial services, health care, retail and technology industry.

this includes several contracts with existing and new clients in the communications financial services health care retail and technology industries


is there any reason why you think you might see sort of asset-level performance issues as a result of that combination? Or for the most part, do you think it's going to be a fairly smooth transition with no real property-level impact?

is there any reason why you think you might see sort of asset level performance issues as a result of that combination or for the most part do you think it's going to be a fairly smooth transition with no real property level impact


I think this is -- I'm going to talk slowly until I get a nod here, but I think this is pretty close to what we had last -- the second half is about the same as last year.

i think this is -- i'm going to talk slowly until i get a nod here but i think this is pretty close to what we had last -- the second half is about the same as last year


very quickly and have got into our results as rapidly as possible. We put the integration teams together to really focus on how we could drive the growth of the businesses into the different segments

very quickly and got into our results as rapidly as possible and we put the integration teams together to really focus on how we could drive the growth of the businesses into the different segments


Entering in the conversations with the company now, and I'm speaking in a hypothetical way, we bring to the table a much more mature organization with a much stronger balance sheet and a much larger team for execution.

entering into conversations with the company now and i'm speaking in a hypothetical way we bring to the table a much more mature organization with a much stronger balance sheet and a much larger team per execution


We expect to dose the first chronic HBV patients during the second quarter of 2019. The study is designed to evaluate patients in 2 different groups.

we expect to dose the first chronic hbv patient during the second quarter of 2019 the study is designed to evaluate patients in 2 different groups


and we can create even higher return for shareholders. So our first opportunity comes from the depth of industry. And then as Mr. Wang just said,

and we can create even higher return for shareholders so our first opportunity comes from the depth of industry and then as mr wang just said


When he refers to '17, he's referring to the recapture of that lost business in the industry. So that's what we think. Do we know? We don't know, but we think that in '17, we don't see it happening in the next 12 months

when he refers to '17 he's referring to the recapture of that lost business in the industry so that's what we think do we know we don't know but we think that in '17 we don't see it happening in the next 12 months


if the result of that adjustment is that the -- technically the tariff should go up, clearly the second condition applies, which is we are

if the result of that adjustment is that technically the tariffs should go up clearly the second condition applies which is we are


maintenance and repair of electricity distribution lines, as well as contracts related to industrial, commercial and institutional electrical work.

maintenance and repair of electricity distribution lines as well as contracts related to industrial commercial and institutional electrical work


And we expect to continue to earn revenues from the helicopter on dry-lease. As such, we expect the suspension to have limited impact on our near-term financial results.

and we expect to continue to earn revenues from the helicopter on dry leases as such we expect the suspension to have limited impact on our near-term financial results


for an international provider with scale and highly technical resources. But just as we always do, we will monitor the marketplace and adjust our hiring plan up or down as needed.

for an international provider with scale and highly technical resources but just as we always do we will monitor the marketplace and adjust our hiring plan up or down as needed


Our call today will include remarks about future expectations, plans and prospects for Knowles, which constitute forward-looking statements for purposes of the safe harbor provisions under applicable federal securities laws.

our call today will include remarks about future expectations plans and prospects for knowles which constitute forward-looking statements for purposes of the safe harbor provisions under applicable federal securities laws


But as you can see on the right, on where we have selling and administrative expense, you see the benefit of being efficient and having larger revenue base

but as you can see on the right on -- where we have selling and administrative expense you see the benefit of being efficient and having larger revenue base


And then this analysis doesn't assume kind of further regulatory action by other U.S. AGs, by international regulators and doesn't assume there's any knock-on effect on the international distributor network.

and then this analysis doesn't assume kind of further regulatory action by other u s ags by international regulators and doesn't assume there's any knock-on effect on the international distributor network


Paul, the best answer would be Jan 1. But obviously, it depends on how the industry responds. There are certain areas that we

well the best answer would be jan 1 but obviously it depends on how the industry responds there are certain areas that we


Please turn to Page 6 of the materials. We aim at shifting from pursuing growth through investment in businesses to deeply engaging with businesses,

please turn to page 6 of the materials we aim at shifting from pursuing growth through investment in businesses to deeply engaging with businesses


and another portion will go in June 1. So part of the rail pressure might have already been in the first quarter or that -- is that the wrong way to look at it?

and another portion will go in june 1 so part of the rail pressure might have already been in the first quarter or that -- is that the wrong way to look at it


while hog prices have been rather low. We have made very good use of the export advantages, and

while hog prices have been rather low we have made very good use of the export advantages


We are very, very encouraged by the net neutrality position of the European government and European Commission. What they've approved recently to us is a very balanced, healthy approach

we are very very encouraged by the net neutrality position of the european government european commission what they've approved recently to us is a very balanced healthy approach


Volumes on the Mid-Saskatchewan system increased as a result of the connection reactivations and from the completion of several expansion projects in mid-2015 to accommodate increased regional production

volumes on the mid-saskatchewan system increased as a result of connection reactivations and from the completion of several expansion projects in mid-2015 to accommodate increased regional production


For both of our businesses, we continue to drive product innovation and creativity and provide a diverse product mix that meets the changing demands of our customers.

for both of our businesses we continue to drive product innovation and creativity and provide a diverse product mix that meets the changing demands of our customers


We remain very confident in our global competitive position and the application of our dedicated supplier model to take advantage of the strength in the growing regions of the wind market,

we remain very confident in our global competitive position and the application of our dedicated supplier model to take advantage of the strength up -- in the growing regions of the wind market


This growing base of recurring revenue continues to provide us with a stable business platform for profitable future growth. A few comments on our Payment Processing business.

this growing base of recurring revenue continues to provide us with a stable business platform for profitable future growth and a few comments on our payment processing business


We remain confident in our strategies, the prospects for our company, the capabilities of our dedicated employees and the experience of our management team as we grow our business and capitalization.

we remain confident in our strategies the prospects for our company the capabilities of our dedicated employees and the experience of our management team as we grow our business and capitalization


the completion bond would be added on in the second quarter as well as the third quarter, but by the end of the year, our hope

the completion bond would be added on in the second quarter as well as the third quarter but by the end of the year our hope


good strength for orders from the very large fleets to have lot of the older equipment in their fleet.

good strength for orders from the very large fleets who have a lot of the older equipment in their fleet


basically prefunded our plans for the next couple of years there. So you'd have to get down to some pretty low scenarios before we thought about significant changes to our strategy.

basically prefunded our plans for the next couple of years there so you'd have to get down to some pretty low scenarios before we thought about significant changes to our strategy


So that means that we feel very confident to achieve our guidance for this year, although we still have to launch in many countries.

so that means that we feel very confident to achieve our guidance for this year although we still have to launch in many countries


As I mentioned, we are absolutely stopping the initiatives that we can responsibly stop, but most of our new work won't be ready to show customers until well into calendar 2019. As a result,

as i mentioned we are absolutely stopping the initiatives that we can responsibly stop but most of our new work won't be ready to show customers until well into calendar 2019 as a result


We are positioning the company to continue to grow over the foreseeable future. But to understand that, first, let me tell you how I see the current state of our technology.

we're positioning the company to continue to grow over the foreseeable future but to understand that first let me tell you how i see the current state of our technology


We are currently at 6,000 feet and the well should be complete by the middle of August with evaluation and testing operations set for the end of August.

we are currently at 6 000 feet and the well should be complete by the middle of august with evaluation and testing operations set for the end of august


It has been a very strong quarter for Frontera and we continue to deliver our operational plan to position Frontera for growth in reserves and in production.

it has been a very strong quarter for frontera and we continue to deliver our operational plan to position frontera for growth in reserves and in production


Our view is that our job quarter after quarter, day after day is to continue to look for good investments. We are always cautious about individual companies and the environment.

our view is that our job quarter after quarter day after day is to continue to look for good investments we are always cautious about individual companies and the environment


This reflects negative sales growth of slightly less than 1% at the low end and positive sales growth of 4% at the high end and is reflective of the challenging end markets we continue to experience.

this reflects negative sales growth of slightly less than 1% at the low end and positive sales growth of 4% at the high end and is reflective of the challenging end markets we continue to experience


and have launched a new cost savings program that will continue through 2019 to reduce structural expenses, while also enabling us to invest in the business appropriately.

and have launched a new cost savings program that will continue through 2019 to reduce structural expenses while also enabling us to invest in the business appropriately


As you know, we completed the Gas Distribution sale on the 31st of March. The accounting for this large transaction has added a layer of complexity to the results for the year.

as you know we completed the gas distribution sale on the 31st of march the accounting for this large transaction has added a layer of complexity to the results for the year


Yes. And I think the other side of that, Jamie, is that as we grow subscribers, the same dollars invested will be less cash, right? Because with our margin, as we grow subscribers and revenue,

yes and i think the other side of that jamie is that as we grow subscribers the same dollars invested will be less cash right because with our margin as we grow subscribers and revenue


This was driven by the lower UAN and ag ammonia sales volumes previously discussed, which were partially offset by the increased sales volumes of our industrial and mining products, given our increased marketing efforts

this was driven by the lower uan and ag ammonia sales volumes previously discussed which were partially offset by the increased sales volumes of our industrial and mining products given our increased marketing efforts


On Page 3, let me briefly cover our first quarter results. Please note that for comparability to prior quarters and due to the fact that Orlaco only contributed for a portion of the first quarter,

on page 3 let me briefly cover our first quarter results please note that for comparability to prior quarters and due to the fact that our lacko only contributed for a portion of the first quarter


in the second quarter, that would mean that margins would really need to pick up in the third and fourth quarter just to get to the bottom range of that guidance. And so I'm just trying to understand the puts and takes there of how we get there.

in the second quarter that would mean that margins would really need to pick up in the third and fourth quarter just to get to the bottom range of that guidance and so i'm just trying to understand the puts and takes there of how we get there


that's not something -- I don't think that's something we're prepared to do here and there'd be a lot of judgment calls about where direct lending ends and something that you would consider other than direct lending begins.

that's not something -- i don't think that's something we're prepared to do here and there'd be a lot of judgment calls about where direct lending ends and something that you would consider other than direct lending begins


While our focus will be on remodeling stores in 2018 rather than opening new stores, we continue to believe we have a significant opportunity for unit growth.

while our focus will be on remodeling stores in 2018 rather than opening new stores we continue to believe we have a significant opportunity for unit growth


Allocating cash toward debt reduction is Vistra's highest priority for capital allocation in the near term as Vistra is focused first and foremost on achieving its long-term leverage target

allocating cash toward debt reduction is vista's highest priority for capital allocation in the near term as vista is focused first and foremost on achieving its long-term leverage target


As it relates to the remediation of mines, you have to do that pretty much immediately after you shut those down. And then ash ponds, you have a timeframe but it's relatively near term.

as it relates to the remediation of mine you have to do that pretty much immediately after you shut those down and then ash ponds you have a time frame but it's relatively near term


of? So in Europe, we have seen significant strength in the market on the back of a very dramatic substitution growth,

so in europe we have seen significant strength in the market on the back of very dramatic substitution growth


A key element of our strategy to return SeaChange to revenue growth in the coming years is to expand the use of channel partners and technology partners to reach more customers and prospects

a key element of our strategy to return sea change to revenue growth in the coming years is to expand the use of channel partners and technology partners to reach more customers and prospects


It's no different from how we report it today. And we thought it was important, very important, that everybody on this call understand that when we talk about these additional locations,

it's no different from how we report it today and we thought it was important very important that everybody on this call understand that when we talk about these additional locations


due largely to inventory timing lags, but we are confident that this will become a more notable factor in the remaining quarters this year if raw materials remain at current price levels.

due largely to inventory timing lags but we are confident that this will become a more notable factor in the remaining quarters this year if raw materials remain at current price levels


For those of you who may be interested in exploring this further, we published a market update in our website on January 23 that provides our perspective on the rapidly evolving FCEV car market.

for those of you who may be interested in exploring this further we published a market update on our website on january 23 that provides our perspective on the rapidly evolving fcev car market


And do you believe that we would have an additional demand from heavy plates, according to what we are seeing in the market right now? Would you be able to meet

and do you believe that we would have an additional demand from heavy plates according to what we are seeing in the market right now would you be able to meet


And as I said, the VA continues to ramp up nicely. So we're encouraged by the access that we're getting. And now we have to work to build market share, and that's what we're going to focus on as we move forward. In terms of the

and as i said the va continues to ramp up nicely so we're encouraged by the access that we're getting and now we have to work to build market share and that's what we're going to focus on as we move forward in terms of the


And in commercial markets, we saw modest improvement in our U.K. markets with an extremely strong quarter in Canada. U.S. municipal markets also continued to perform as expected.

and in commercial markets we saw modest improvement in our u k markets with an extremely strong quarter in canada u s municipal markets also continued to perform as expected


So I know you've been competing successfully with private label for a long time, but are you sensing some change, especially as you have retailers like Amazon coming on

so i know you've been competing successfully with private label for a long time but are you sensing some change especially as you have retailers like amazon coming on


In addition, we have now started to make premium payments to the Bermuda Deposit Insurance scheme. And finally, we now have some new costs associated with being a U.S. public company.

in addition we have now started to make premium payments to the bermuda deposit insurance scheme and finally we now have some new costs associated with being a u s public company


Our strength in these areas offset the pressure on our core Automotive results in Europe related to mild winter weather and broad economic and political considerations.

our strength in these areas offset the pressure on our core automotive results in europe related to mild winter weather and broad economic and political considerations


It is my belief that if you invest in your people and provide a workplace that people are proud to be a part of, where they feel valued and appreciated, the company, as a whole, benefits.

it is my belief that if you invest in your people and provide a workplace that people are proud to be a part of where they feel valued and appreciated the company as a whole benefits


Now we are focusing our efforts on a tightened span of distributors, which in our view provide the best opportunity for asset growth and efficient home, office and wholesaler coverage.

now we are focusing our efforts on a tightened span of distributors which in our view provide the best opportunity for asset growth and efficient home office and wholesaler coverage


to drive long-term value for customers, shareholders and team members through innovative product development, superior quality and lean business processes.

to drive long-term value for customers shareholders and team members through innovative product development superior quality and lean business processes


all of those lead to that word-of-mouth and mounting interest as they start to hear more about the experience from the key opinion leaders. So there's been no impact we've seen, whether it's from hospital

all of those lead to that word of mouth and mounting interest as they start to hear more about the experience from the key opinion leaders so there's been no impact we've seen whether it's from hospital


Those remarks are intended to serve in place of extended formal comments, and we will not repeat them on this call. We will also post a transcript of management's opening commentary on our website at the end of the call.

those remarks are intended to serve in place of extended formal comments and we will not repeat them on this call we will also post a transcript of management's opening commentary on our website at the end of the call


Second, we are expanding our capabilities in the construction space by acquiring PlanGrid to complement our construction portfolio as well as to enhance our reach within the industry.

second we are expanding our capabilities in the construction space by acquiring plangrid to complement our construction portfolio as well as to enhance our reach within the industry


While we have not seen signs of affordability impacting demand as of yet, we are making a conservative effort to offer more affordable options for millennial buyers in this market.

while we have not seen signs of affordability impacting demand as of yet we are making a concerted effort to offer more affordable options for millennial buyers in this market


I am proud to say that our ongoing focus on our associates and our customers, as demonstrated by these awards, continues to translate into strong operational and financial performance.

i am proud to say that our ongoing focus on our associates and our customers as demonstrated by these awards continues to translate into strong operational and financial performance


All of our drinks in the third quarter by September, we will finish the season. In winter, we will launch a new season.

all of our drinks in the third quarter by september we will finish the season in winter we will launch a new season


driven by improvements in our cathodic protection businesses and up slightly from our previous guidance due to the margin performance on the large international field joint coating projects.

driven by improvements in our cathodic protection business and up slightly from our previous guidance due to the margin performance on the large international field joint coating projects


These actions position us to recognize modest sequential margin expansion in the first quarter of 2016 at Distribution, and we expect to see improved margin result

these actions position us to recognize modest sequential margin expansion in the first quarter of 2016 at distribution and we expect to see improved margin results


increased, and this means that our customers are becoming more loyal. This also had a slight impact in anticipation costs. And with the growth of e-commerce,

increased and this means that our customers are becoming more loyal this also had a slight impact in anticipation costs and with the growth of e-commerce


And in Europe, we saw an initially relatively slow uptick in diagnosed untreated patients. But as we get to higher maturity, as we get to higher market shares of switch patients,

and in europe we saw an initially relatively slow uptake in diagnosed untreated patients but as we get to higher maturity as we get to higher market shares of switch patients


to people who in too many cases, particularly children living with these diseases believe that they no longer have hope. Up to 10,000 children that we estimate are living

to people who in too many cases particularly children living with these diseases believe that they no longer have hope up to 10 000 children that we estimate are living


Unfortunately, as you know, the timing of those eventual settlements are ultimately not in our control, but we remain hopeful of achieving major settlements this year.

unfortunately as you know the timing of those eventual settlements are ultimately not in our control but we remain hopeful of achieving major settlements this year


It's our determination to continue growing and expanding, always extracting the most of any situation and always being a profitable investment to our shareholders.

is our determination to continue growing and expanding always extracting the most of any situation and always being a profitable investment to our shareholders


This sales improvement more than offset lower sales related to deemphasizing less profitable geographic regions and the reduction in turnaround activity due to the impact of Hurricane Harvey.

this sales improvement more than offset lower sales related to deemphasizing less profitable geographic regions and the reduction in turnaround activity due to the impact of hurricane harvey


In addition, both Newport and Natural American Spirit made another impressive showing in the marketplace. And together, with higher pricing in both cigarettes and moist snuff,

in addition both newport and natural american spirit made another impressive showing in the marketplace and together with higher pricing in both cigarettes and moist snuff


we'll start by sharing some details about an exciting acquisition we just announced that we feel will truly add value for our clients and continues to extend the breadth and capabilities of our solution platform.

i want to start by sharing some details about an exciting acquisition we just announced that we feel will truly add value for our clients and continues to extend the breadth and capabilities of our solution platform


than it is by competitive situations. And although we have strengthened in certain markets that exceed strength in other markets, we also have customers that we deal with in all of the markets.

than it is by competitive situations and although we have strength in certain markets that exceed strength in other markets we also have customers that we deal with in all of the markets


There you will also find our second quarter 2017 earnings release. At the end of this call, the presentation will be available on that site and within a few hours, the replay of the call will be posted.

there you will also find our second quarter 2017 earnings release at the end of this call the presentation will be available on that site and within a few hours the replay of the call will be posted


our Q4 growth was positive and in line with our historical trends. So we expect Consumer's organic growth will be back to more normal historical levels during the first quarter.

our q4 growth was positive and in line with our historical trends so we expect consumers organic growth will be back to more normal historical levels during the first quarter


Before wrapping up my remarks, I'd like to share with you the 3 strategic objectives that we have established for the next several years as extensions of the new Marlin 2.0 paradigm.

before wrapping up my remarks i'd like to share with you the 3 strategic objectives that we have established for the next several years as extensions of the new marlin 2 0 paradigm


This process, which begins when documents are generated and ends when the lease or loan is funded, is an area of extreme customer sensitivity and is a process that is ripe for automation.

this process which begins when documents are generated and ends when the lease or loan is funded is an area of extreme customer sensitivity and is a process that is ripe for automation


where the market is now is still above where it was a year ago. So you are still going to see a growth in Q3 relative to what you saw last year.

where the market is now is still above where it was a year ago so you are still going to see a growth in q3 relative to what you saw last year


Thanks, John. I'd like to thank everyone for listening today. I'm going to review the quarterly results and share a few details with regard to our business trends and then we'll take questions.

thanks john i'd like to thank everyone for listening today i'm going to review the quarterly results and share a few details with regard to our business trends and then we'll take questions


Capital expenditures for this full fiscal year are expected to remain lower than last year as some capacity expansion projects have continued to be temporarily deferred based on market conditions.

capital expenditures for this full fiscal year are expected to remain lower than last year as some capacity expansion projects have continued to be temporarily deferred based on market conditions


that will come out today. Is there going to be any change? The problem with overregulating these industries is that you end up with bad outcomes and unintended consequences, because

that will come out of it is there going to be any change the problem with overregulating these industries is that you end up with bad outcomes and unintended consequences because


Looking forward, it's the pace of change and related uncertainties that make the Connected 4 Growth transformational program particularly important.

looking forward it's the pace of change and related uncertainties that make the connected for growth transformational program particularly important


We're seeing really some benefits behind that. But at the same time, we maintain our responsibility to look at other options where they're needed. But the

we're seeing really some benefits behind that but at the same time we maintain our responsibility to look at other options where that needed but the


those who have entrusted their capital to us, to generate secure growing returns to provide for their retirements, their children's educations and all the other noble financial goals they may be pursuing.

those who have entrusted their capital to us to generate secure growing returns to provide for their retirements the children's educations and all the other noble financial goals they may be pursuing


that they know that we are maniacally focused on driving growth for them. So they like to give us the space because we handle displays and merchandising very well, and we make it easier for the retailers to do business with us.

that they know that we are maniacally focused on driving growth for them so they like to give us the space because we handle displays and merchandising very well and we make it easier for the retailers to do business with us


offered through the Home Affordable Modification Program, commonly referred to as HAMP, in addition to proprietary modification programs to help more borrowers qualify for a modification.

offered through the home affordable modification program commonly referred to as hamp in addition to proprietary modification programs to help more borrowers qualify for a modification


We've slowed down work on our heavy oil project. It's something that we never recommended people to invest in our company related to that and with the low price of oil,

we've slowed down work on our heavy oil project it's something that we never recommended people to invest in our company related to that and with the low price of oil


what we continue to see is that our customers require us to move their cargo and produce oil, and that's with -- that's our part of it.

what we continue to see is that our customers require us to move their cargo and produce oil and that's what -- that's our part of it


As set forth in my opening remarks, we are not sitting still. We've embarked on a number of important initiatives that we believe will make the company more productive and drive more profitable growth in the future.

as set forth in my opening remarks we are not sitting still we've embarked on a number of important initiatives that we believe will make the company more productive and drive more profitable growth in the future


We will continue with aggressive capital expenditures. As shown in Table 1 to the right, EBITDA is projected to exceed the capital expenditure during this strategy period.

we will continue with aggressive capital expenditures as shown in table 1 to the right ebitda is projected to exceed the capital expenditure during this strategy period


please note that our RevPAR and margin comparisons are presented to include the Shorebreak Hotel and Sheraton Suites Key West as if they were owned for all periods presented.

please note that our revcar and margin comparisons are presented to include the shorebreak hotel and sheridan suites key west as if they were owned for all periods presented


We began to develop a C1 downstream purification process for certolizumab. We demonstrated further success in reaching high and promising expression levels

we began to develop a c1 downstream purification process for solazamide we demonstrated further success in reaching high and promising expression levels


The majority of the balance of deferred revenue associated with the Alexion collaboration will be recognized over the anticipated 3-year term of the initial research programs.

the majority of the balance of deferred revenue associated with the alexion collaboration will be recognized over the anticipated 3-year term of the initial research programs


the full physical integration of the Carson and Wilmington operations, yield flexibility of between 30,000 to 40,000 barrels a day of gasoline and distillates and

the full physical integration of the carson and wilmington operations yield flexibility up between 30 000 to 40 000 barrels a day of gasoline and distillates


based upon that range of margins and what we're doing in the business, we are very comfortable that

based upon that range of margins and what we're doing in the business we are very comfortable that


except to the extent required by law. The inclusion of any statement on this conference call does not constitute an admission by the company or any other person that the events or circumstances described in such statement are material.

except to the extent required by law the inclusion of any statement on this conference call does not constitute an admission by the company or any other person that the events or circumstances described in such statement are material


Moving to the DTV Now platform or moving to a thin client platform eventually for the home, is really going to change the free cash flow aspects because the upfront

moving to the dtv now platform or moving to a thin client platform eventually for the home is really going to change the free cash flow aspects because the upfront


We're trying to, if you will, make sure we're willing to invest this opportunity in the customer base to grow the business and the opportunities for the long term. I don't want to suggest

we're trying to if you will make sure we're willing to invest this opportunity in the customer base to grow the business and the opportunities for the long term i don't want to suggest


By building on their strengths and core competencies, we will be successful in increasing our reach and creating lasting value for shareholders.

by building on their strengths and core competencies we will be successful in increasing our reach and creating lasting value for shareholders


in case we have the ability to raise capital through monetization of any -- of our portfolio, then we will use the same for the reduction of debt.

in case we have the ability to raise capital through monetization of any -- of our portfolio then we will use the same for the reduction of debt


perspective and then some of the engagements you have with OEMs? Are there -- you're taking Class 1 to Class 3, is it more concentrated in Class 3, just trying to get a sense of the mix within the

perspective and then some of the engagements you have with oems are there -- you're talking class 1 to class 3 is it more concentrated in class 3 just trying to get a sense of the mix within the


We've changed the fundamental composition of our business and it is clear, we've made significant progress toward transforming ourselves into a higher-margin, diversified industrial manufacturer.

we have changed the fundamental composition of our business and it is clear we have made significant progress toward transforming ourselves into a higher-margin diversified industrial manufacturer


Under the terms of this agreement, STRATA will be the exclusive distributor of Nordlys systems for 3 years with an automatic extension out to a 5-year term if minimum sales targets are achieved.

under the terms of this agreement strata will be the exclusive distributor of nordlys systems for 3 years with an automatic extension out to a 5-year term if minimum sales targets are achieved


But then it becomes a lot of other things. And it's a wide variety of things even within Mobile, within Ear. There is a lot of different things people are thinking about with this device. And I think

but then it becomes a lot of other things and it's a wide variety of things even within mobile within ear there's a lot of different things people are thinking about with this device and i think


There were no such true-ups in this quarter, but we would expect there to be in future quarters. We've provided a few schematics in the appendix of the slide deck that further highlight these details.

there were no such true-ups in this quarter but we would expect there to be in future quarters we've provided a few schematics in the appendix of the slide deck that further highlight these details


and then optimize our manufacturing footprint for what we call light assembly businesses. Most of the lead battery factories are capital intensive,

and then optimize our manufacturing footprint for what we call light assembly businesses so most of the lead battery factories are capital intensive


But I can tell you from first-hand talking to the people, takes a lot to crush their spirits. I heard stories about people showing up at the plant the day after the hurricane wanting to go to work.

but i can tell you from firsthand talking to the people it takes a lot to crush their spirits i heard stories about people showing up at the plant the day after the hurricane wanting to go to work


not the best thing in the world, it's not 30%, but there's certainly a significant possibility given what's going on that they could go lower before they go up. It is a little novel that they've slowed down for the moment.

not the best thing in the world it's not 30 but there's certainly a significant possibility given what's going on that they could go lower before they go up it is a little novel that they've slowed down for the moment


effective Jan 1. But there may also be other areas of pricing that are not as easy to lead, but certainly, we are of the view that the industry will respond rationally

effect of jan 1 but there may also be other areas of pricing that are not as easy to lead but certainly we are of the view that the industry will respond rationally


if you found the right drug with the right profile, it's clearly a significant opportunity. It's one of the things that's on our target list. As I said, what we do from a business development or

if you found the right drug with the right profile it's clearly a significant opportunity it's one of the things that's on our target list as i said what we do from a business development or


client -- risk profile client to them, then it goes through underwriting as well. So that's why I think they've done a very good job on risk. So it won't have to -- we won't have to

client risk profile client to them then it goes through underwriting as well so that's why i think they've done a very good job on risk so it won't have to -- we won't have to


This has enabled good progress against our measures of efficient growth and value creation. We have shown how our productivity work is supporting investment in growth and improved margins.

this has enabled good progress against our measures of efficient growth and value creation we have shown how our productivity work is supporting investment in growth and improved margins


As a reminder, ladies and gentlemen, this conference call is being recorded and may not be reproduced in whole or in part without permission from the company. I would now like to turn the call over to Steve Calk. Please go ahead.

as a reminder ladies and gentlemen this conference call is being recorded and may not be reproduced in whole or in part without permission from the company i would now like to turn the call over to steve kalk please go ahead sir


end. Yes. I don't think we're managing a -- we're seeing crisis. I think we're being prudent in applying the reserve, we want to make sure that we have all that we need to support the strategy and the

yes i don't think we're managing -- we're seeing a crisis i think we're being prudent in applying the -- we want to make sure we have all that we need to support the strategy and the


Initial metrics show the advertising and marketing campaigns we launched in the second quarter of this year to highlight the aesthetics, performance and sustainability

initial metrics show the advertising and marketing campaigns we launched in the second quarter of this year to highlight the aesthetics performance and sustainability


continues to result in year-over-year increases in graduates that exceed our total enrollment growth rate. We estimate that our total ground enrollment, which is ground traditional and professional study students,

continues to result in year-over-year increases in graduates that exceed our total enrollment growth rate we estimate that our total ground enrollment which is ground traditional and professional study students


It's not just a matter of can you get it cheaper on a per day basis? Medicare finally -- and I say finally. Medicare is recognizing that with this bundle.

it's not just a matter of can you get it cheaper on a per day basis medicare finally -- and i say finally medicare is recognizing that with these bundled


So there's a whole bunch of opportunities we think on the credit side going forward that allow us to have less and less capital requirements and ultimately,

so there's a whole bunch of opportunities we think on the credit side going forward that allow us to have less and less capital requirements and ultimately


It sounds like a great channel. Just if I could follow-up on that. When will you know whether that is playing out well? And to what degree are these small employers and even mid market looking for a

that sounds like a great channel just if i could follow up on that when will you know whether that is playing out well and to what degree are these small employers and even mid-market looking for a


Moving to franchise distribution. The platform declined low single digits during the first quarter. Tennessee's performance was impacted by significant customer inventory reductions, while Matco was up slightly.

moving to franchise distribution the platform declined low single digits during the first quarter hennessy's performance was impacted by significant customer inventory reductions while macao was up slightly


We took advantage of it for a while when there was some strength and we built some water haulers and when we were in the frac tank business for a while, and

we took advantage of it for a while when there was some strength and we built some water haulers and we were in the frac tank business for a while and


And that whole process, his celebrity and his ability to reach the public market so easily and for free

and that whole process his celebrity and his ability to reach the public market so easily and for free


this is what's -- this is really causing a problem that maybe a quarter from now, maybe there will be that. There is nothing that way that I know right now. The one thing I have heard

this is what's -- this is really causing a problem maybe a quarter from now maybe there will be that there is nothing that way that i know right now the one thing i have heard


Highly publicized incidents over the past few years have prompted lawmakers to become more aggressive in using public policy as a tool to protect students from violent people.

highly publicized incidents over the past few years have prompted lawmakers to become more aggressive in using public policy as a tool to protect students from violent people


The share is up 3 percentage points year-on-year. The main driver is the inflow of large ticket jobs in the Middle East.

the share is up 3 percentage points year-on-year the main driver is the inflow of large ticket jobs in the middle east


Okay. Perfect. And then you mentioned earlier that blending at Buly is giving you a bit of a kind of process improvement. Can you quantify the recovery benefit there?

okay perfect and then you mentioned earlier that blending of bullies giving you a bit of a kind of process improvement can you quantify the recovery benefit there


So we see every opportunity to learn from the experience we're having with Alibaba and bring some of the unique items, some of the subscription opportunities for brands like belVita, for example,

so we see every opportunity to learn from the experience we're having with alibaba and bring some of the unique items some of the subscription opportunities for brands like delvita for example


The lawsuit does not request a stay or an expedited trial, and we continue to believe that the CES design is sound, and that it will withstand any legal challenge.

the lawsuit does not request a stay or an expedited trial and we continue to believe that the ces design is sound and that it will withstand any legal challenge


And next topic here, which I think will be important to follow going forward, is the foreign exchange and the dollar development.

and next topic here which i think will be important to follow going forward is the foreign exchange and the dollar development


what it clearly is signaling to us is that the distributors are adjusting their stock levels, which says that their end markets, their end customers are signaling to them a lower demand.

what it clearly is signaling to us is that the distributors are adjusting their stock levels which says that their end market their end customers are signaling to them a lower demand


that is the constant challenge that we're taking on and going to continue in that investment in 2019, but we were able to do a lot of it in the second half of the year.

that is a constant challenge that we're taking on and going to continue in that investment in 2019 but we were able to do a lot of it in the second half of the year


The company's actual results could differ materially from those indicated in any forward-looking statements due to many factors, the most important of which are described in the company's latest filings with the Securities and Exchange Commission,

the company's actual results could differ materially from those indicated in any forward-looking statements due to many factors the most important of which are described in the company's latest filings with the securities and exchange commission


Given these headwinds for our clients, we are adapting strategically to become increasingly more competitive, offer greater functionality and be the essential partner to our clients.

given these headwinds for our clients we are adapting strategically to become increasingly more competitive offer greater functionality and be the essential partner to our clients


I mean, are you going to kind of look and take the current spread forward? Or are you going to try to impact -- or try to incorporate some of the impacts the spread could feel for even that waste oil pricing or maybe even VGO pricing.

i mean are you going to kind of look and take the current spread forward or are you going to try to impact -- or try to incorporate some of the impacts the spread could feel from either that waste oil pricing or maybe even vgo pricing


February is historically our lowest-volume month of the year, and therefore, the effect of weather disruptions can have a magnified impact on the monthly sales growth rates.

february is historically our lowest volume month of the year and therefore the effect of weather disruptions can have a magnified impact on the monthly sales growth rates


We also introduced new electronic tools to enhance customer engagement and developed better, stronger relationships with both new and long-standing customers and vendor partners.

we also introduced new electronic tools to enhance customer engagement and developed better stronger relationships with both new and long-standing customers and vendor partners


company considering listing in the Novo Mercado? And the second question has to do with the growth plan. Could you give us an update, please, about the company's mindset

company considering listing in the novo mercado and the second question has to do with the growth plan could you give us an update please about the company's mindset


is down. I was mentioning the investments and -- but there is also a strong currency effect based on the guidance rates that we have kept.

is down i was mentioning the investments but there is also a strong currency effect based on the guidance rates that we have kept


We've looked at the number of markets that a relationship manager covers. Again there, where we've decided to reduce a certain number of markets that we were covering in the past, but where we didn't have

we've looked at the number of markets that the relationship manager covers again there where we've decided to reduce a certain number of markets that we were covering in the past but where we didn't have


Great. To your second question, I think the plan -- sorry. I just want to answer the second question. I think you've seen the plan that we have that

great to your second question i think the plan -- sorry i just want to answer the second question i think you've seen the plan that we have the


Okay. So those will be a drag on margins in '17, but you'd expect that component of the business to see expanding margins further out as volumes pick up.

okay so those will be a drag on margins in '17 but you'd expect that component of the business to see expanding margins further out as volumes pick up


we're very proud of that. When I referred to our high teens in new logo growth, we refer about the number of new clients that we were able to sell to

and we're very proud of that when i refer to our high teens in new logo growth we refer about the number of new clients that we were able to sell to


to help us determine the best use for this acreage. Working with our local teams, they will be evaluating our property and recommending highest and best use for the future development or sale.

to help us determine the best use for this acreage working with our local teams they will be evaluating our property and recommending highest and best use for the future development or sale


Is that due to customers buying multiple services within COB and Program Integrity? Or is it due to new relationships or existing relationships starting off with a bigger set of membership?

is that due to customers buying multiple services within cob and program integrity or is it due to new relationships or existing relationships starting off with a bigger set of membership


More importantly, we are investing in additional resources in our research and development function to support delivery against our product road map despite the cost reduction efforts.

more importantly we are investing in additional resources in our research and development function to support delivery against our product road map despite the cost reduction efforts


due to a number of risks and uncertainties. Certain of these risks and uncertainties, in addition to other risks, are more fully described in the company's filings with the Securities and Exchange Commission.

due to a number of risks and uncertainties certain of these risks and uncertainties in addition to other risks are more fully described in the company's filings with the securities and exchange commission


using advanced packaging techniques. All 5 of these approaches will require major advances in materials engineering and create huge opportunities for Applied.

using advanced packaging techniques all 5 of these approaches will require major advances in materials engineering and create huge opportunities for applied


increases last year in labor, and I think we're in pretty good shape going into this year given the volumes. So I would expect

increases last year in labor and i think we're in pretty good shape going into this year given the volumes so i would expect


Such market volatility drive enterprise buyers and technology and service providers to seek our advice, research and support to help them achieve their digital business objectives.

such market volatility drives enterprise buyers and technology and service providers to seek our advice research and support to help them achieve their digital business objectives


So we now have our teams trained up. We have advanced our digital training to our people around the world. And we are very pleased with the

so we now have our teams trained up we have advanced our digital training to our people around the world and we are very pleased with the


Been a great recovery there. I know the demand has outstripped your ability to supply recently. Can you give us an update on your efforts to bring that into balance?

been a great recovery there i know the demand has outstripped your ability to supply recently can you give us an update on your efforts to bring that into balance


As we said, the sales force is relatively new. We were getting a lot of inbound strategic opportunities. I have a finite number of feet on the street.

as we said the sales force is relatively new we were getting a lot of inbound strategic opportunities i have a finite number of seats on the street


Last quarter, I also talked about a new quick quote application for our management liability business, where a key distribution partner can quote and issue policies entirely within the application.

last quarter i also talked about a new quick quote application for our management liability business where a key distribution partner can quote and issue policies entirely within the application


And most recently the acquisition that we made in Italy that's improved our market presence and grown our product portfolio in Italy.

and most recently the acquisition that we made in italy that's improved our market presence and grown our product portfolio in italy


with the rates sort of stabilizing here, do you expect to see, especially in the multi-family prepayments, stay low for a while? Or was this more of a first quarter phenomenon?

with the rates sort of stabilizing here do you expect to see especially the multifamily prepayments stay low for a while or was this more of a first quarter phenomenon


But it's a way of generating some initial clinical data while actually we continue to work on what we believe could be better candidates coming through for those 2 approaches.

but it's a way of generating some initial clinical data while actually we continue to work on what we believe could be better candidates coming through for those 2 approaches


and I'm very encouraged by our rapid progress towards simplifying our operations and ensuring that we deliver an extraordinary dining experience for each and every one of our guests in each and every one of our restaurants.

and i'm very encouraged by our rapid progress towards simplifying our operations and ensuring that we deliver an extraordinary dining experience for each and every one of our guests in each and every one of our restaurants


more and more guaranteed future value products will lend itself towards increased penetration at the dealership levels. So I think that movement up is correct. I think it is a function of

more and more guaranteed future value products will lend itself towards increased penetration at the dealership level so i think that movement up is correct i think it is a function of


and the performance far exceeds anything else in the province, so we think it's very worthy of our investment. And on the grocery -- conversions of the grocery stores or grocery plazas to

and the performance far exceeds anything else in the province so we think it's very worthy of our investment and on the grocery conversions of the grocery stores or grocery plazas to


We remain focused on generating cash in order to reduce our debt, pay dividends to shareholders and share the value we create with employees and host communities.

we remain focused on generating cash in order to reduce our debt pay dividends to shareholders and share the value we create with employees and host communities


where you -- or who you think you're competing against on most of your digital products. Because there seems to be a separation in the market whereby Accenture, in particular, seems to be winning

where you -- or who you think you're competing against on most of your digital products because there seems to be a separation in the market whereby accenture in particular seems to be winning


These companies fit our acquisition strategy of growth and specialty and high-margin products and services and all were immediately accretive to our earnings.

these companies fit our acquisition strategy of growth in specialty and high-margin products and services and all were immediately accretive to our earnings


James, do you think that reward you talk about in terms of the margin, the marginal business, is it enough to color the outlook for the net interest margin for the segment as a whole? Or is it

james do you think that reward you talk about in terms of the margin the marginal business is it enough to color the outlook for the net interest margin for the segment as a whole or is it


primarily driven by the addition of new business and operating efficiencies. Slide 7 shows the quarterly results for our 2 product segments.

primarily driven by the addition of new business and operating efficiencies slide 7 shows the quarterly results for our 2 product segments


is very consistent with what we expected from a growth perspective. And that, that growth was very, very broad-based across sectors

is very consistent with what we expected from a growth perspective and that that growth was very very broad based across sectors


I think one thing that I'd like to really stress because I'm not sure that investors and analysts completely understand this is when Bill says unequivocal attack

i think one thing that i'd like to really stress because i'm not sure that investors and analysts completely understand this is when bill says unequivocal attack


Just in terms of -- some customers may want to purchase the system versus the motor, just curious in terms of the economic difference between motor versus system to the company? And then,

just in terms of -- some customers may want to purchase the system versus the motor just curious in terms of the economic difference between motor versus system to the company and then


the issues that we were having in Argo -- in our retail business over the last couple of years have really settled down, and so you're starting to see real contribution from that. So,

the issues that we were having in argo in our retail business over the last couple of years have really settled down and so you're starting to see real contribution from that so


a new more broadly defined currency that represents more of the total audience across all screens and platforms, not just the viewing that fits into the rules that define C3 for television.

a new more broadly defined currency that represents more of the total audience across all screens and platforms not just the viewing that fits into the rules that define c3 for television


The experience that we have had, I think, has been better than was underwritten, both in terms of the speed with which we were able to rotate the portfolio and improve yields

the experience that we have had i think has been better than was underwritten both in terms of the speed with which we were able to rotate the portfolio and improve yields


There are some new projects that we know are launching this year, with at least one of them. And then we have trials going on in a couple of different technologies, actually with both of them.

there are some new projects that we know are launching this year with at least one of them and then we have trials going on in a couple of different technologies actually with both of them


very much aligned with what our customers are and certainly not any kind of order of magnitude larger. And in a weird way, we're happy to get the opportunity to prove that point.

very much aligned with what our customers are and certainly not any kind of order of magnitude larger and in a weird way we're happy to get the opportunity to prove that point


to the strengthening of the dollar against the pound and the euro as well as our investments in the BPS platform as we just mentioned. However,

to the strengthening of the dollar against the pound and the euro as well as our investments in the bps platform as we just mentioned however


The 8 new distribution centers we discussed last year, as part of our latest network enhancement, became fully operational in the first quarter of 2018 and are handling freight as designed.

the 8 new distribution centers we discussed last year as part of our latest network enhancement became fully operational in the first quarter of 2018 and are handling freight as designed


of course, all these facilities are in different countries, have been built up during different time phases in the past, have different interfaces because we are part of a plant and we are not the plant

of course all these facilities are in different countries have been built up during different time phases in the past have different interfaces because we are part of a plant and we are not the plant


And so the engineering work is proceeding rapidly. Probably we're more than halfway done with that as a view. And over the course of the next couple of months,

and so the engineering work is proceeding rapidly probably we're more than halfway done with that as a view and over the course of the next couple of months


I was wondering if at this point, given that it's all being set up, you could update us as to what is the capital position of the whole IHC today, what is the total average exposure

i was wondering if at this point given that it's all been set up you could update us as to what is the capital position of the whole ihc today what is the total average exposure


plethora of different systems that are tied together? Or will you be forced at some point to consolidate CRM systems and invest significantly in IT?

a plethora of different systems that are tied together or will you be forced at some point to consolidate crm systems and invest significantly in it


the point at which we can enter those markets. And their -- but the Japanese have led quality just based on their processes, we still think we can add value there.

the point at which we can enter those markets and there -- look the japanese have led quality just based on their processes we still think we can add value there


in terms of modeling the alternative financing, I mean, should we be thinking about this as equity, as some kind of preferred, some kind of debt, or can you not comment

in terms of modeling the alternative financing i mean should we be thinking about this as equity as some kind of preferred some kind of debt or can you not comment


I do still firmly believe that we were for that business the right fit, because we brought that whole experience of furniture to it.

i do still firmly believe that we were for that business the right fit because we brought that whole experience of furniture to it


We're also seeing a spread of deployment across a large number of providers as the Tier 2 players step up their expansion plans into Europe.

we're also seeing a spread of deployment across a large number of providers as the tier 2 players step up their expansion plans into europe


which was the same as the second quarter of 2014. The current quarter's loss ratio was favorably impacted by the inclusion of commercial residential business and favorable prior quarter development

which was the same as the second quarter of 2014 the current quarter's loss ratio was favorably impacted by the inclusion of commercial residential business and favorable prior quarter development


I suspect that if the corruption issues or this drags on for a long time or becomes a bigger issue, we could see that effect funding at some point, but we haven't seen that happen.

i suspect that if there are corruption issues or this drags on for a long time or becomes a bigger issue we could see that affect funding at some point but we haven't seen that happen


And then as you say on top of that, some of the other costs are effectively building in room for growth. Relatively small numbers, but they are things that should scale significantly as we grow. So my sense is,

and then as you say on top of that some of the other costs are effectively building in room for growth relatively small numbers but they are things that should scale significantly as we grow so my sense is